World Currency Watch: FOREX Market, FOREX Trading BLOG

What I Learned from a 20-Minute Conversation that Could Save Your Portfolio

A couple weeks back, I sat down with my own personal banker. He works for one of the largest banks of the world. But I wasn’t there to open a new checking account or refinance my mortgage.

I was there to get a little inside intel on this so-called “recovery” we have heard so much about in the news lately.

So we started talking. Over the course of our conversation, he admitted that 41 loans have crossed his desk since the beginning of the year. That’s 41 individuals, possible business owners, and families seeking a loan.

Of those 41 loans, he has only approved ONE this year.

To me, this was a harsh reminder that the credit market is still more frozen than we would all like to believe. But it’s possible this is just one isolated incident right? (Maybe my banker just has higher lending standards than most.)

Just to confirm that, I asked my banker if he was the only one rejecting loans, or if this was what happening all over? He confirmed that it was exactly what he was seeing throughout the company.

Furthermore, that’s exactly what’s happening at most banks right now. That means this “recovery” they keep talking about is nothing more than filler on the news.

After all, EVEN if consumers want to spend…they can’t get their hands on the funds that they need for big-ticket items. That means consumers’ hands are tied. They are at the banks’ mercy.

I will give the banks a bit of a break for a second though. Frankly, it’s not really the banks’ fault. You can’t really blame them for tightening their belts in this economy. In fact, if you dig deep enough, you’ll see this all goes back to the government pulling on the economy’s strings.

Who’s Really to Blame for this Lack of Recovery in the U.S.

Remember when the government wanted to “protect the consumer” by running stress tests on all the banks? Well, these banks had to beef up their reserves to pass those tests. Otherwise, the government could take them over or shut them down altogether.

Since they had to hoard the reserves to protect the consumer, it’s made it to where they also can’t LEND to the consumer either. What’s even worse is that this problem has been magnified.

For instance, since banks can lend out roughly 10 times more than they have in reserves….if they have to save back a mere $100,000 …that’s ONE MILLION DOLLARS that they can’t lend out to consumers!

So imagine all of the MILLIONS of dollars banks now have to hold back in extra reserves. You’ll quickly see why they seem tight-fisted with BILLIONS of dollars in loans.

And as I mentioned, tight-fisted banks mean consumers who can’t spend. If consumers can’t spend, our consumer-driven economy will be in trouble for a while still.

It’s not just the bankers who think so. There are key sectors of traders who are shorting right now because they see a pull back coming. In fact, there has been a mass wave of insider selling recently in a few key sectors.

That only means one thing: Certain stocks are poised to correct…big time. When they do, a handful of currencies will rise, and one in particular will drop significantly. But more on that tomorrow…

What the Banker’s Outlook Means

So what does all of this mean? Well in the last 17 years, I’ve come to trust what the inside guys are saying, rather than what the government wants us to believe.

And assuming my banker is right, it means that the stock rally probably doesn’t have much more steam left in it. When it crumbles once again, watch out. There will be plenty of sectors that fall with it.

What does that mean for you? First of all, I wouldn’t be buying U.S. stocks right now. I would be looking to take profits and run.

For all those short-sellers out there, you’re about to have a field day in these markets. You’ll rejoice and prosper as the markets come crashing down once again.

Tomorrow, I’ll give you the inside scoop on the currency that will plummet as stocks drop here in the United States. Talk to you then.

Happy Trading,
Sean Hyman, aka “Professor FX”

Attention Short Sellers

Not many people outside the industry know this, but I moderate a huge online forum for Forex traders. Every day, traders write in their thoughts on what’s happening with the currency markets around the world.

So I have my finger to the pulse of what traders are thinking not just here in the U.S., but in Europe and Asia as well.

Recently, they all seem to be watching the same pair – the GBP/USD. In the past two weeks, more traders are posting their thoughts on the GBP/USD forum than even the EUR/USD forum.

In other words, the pound is more popular than the euro. That almost NEVER happens.

It’s pretty easy to see why. As I’ve mentioned in my last two articles, the pound is poised for a major 1000-pip drop. Right now, traders are lining up to watch the show. In fact, jaws have been dropping as the pound has been falling EVEN FASTER than the dollar (7.4% on an unleveraged basis…that’s a 740% move with 100:1 leverage).

However, let me tell you…there are even better plays out there than GBP/USD – plays that could earn you 50% to 100% more in the Forex market. Even better, you won’t be late to the party…

Three Even Better Ways to Short the Pound

Below I’m going to show you three currency cross pairs.

Two of the pairs have already had a 50% larger gain than GBP/USD and one of the pairs has moved TWICE as higher (% wise) than GBP/USD has.

I bet I have your attention now. So let’s look at them.

The first currency cross has actually bolted much higher as the pound has fallen on its face. That currency pair is EUR/GBP. Check it out below.

Who Said the Euro & Pound Have to Trade Together?

Click to enlarge

It’s been amazing. The dollar has plummeted, so you’d think that EUR/USD and GBP/USD would both be rising.

However, traders didn’t account for the fact that it is possible for a currency to fall even faster than the dollar. If a currency managed that, it would actually LOSE GROUND to a falling dollar.

So since EUR/USD has been upward on its chart and GBP/USD has been downward on its chart, it’s caused the EUR/GBP pair to ROCKET higher.

So while GBP/USD has fallen just over 7%, EUR/GBP has rocketed up 10.8% on the very same pound weakness! Keep in mind that these gains are on an unleveraged basis. So the “real” return to the traders account is magnified many times over.

It wasn’t just the euro either. The pound fell just as hard versus the franc too.

Let’s take a look at the chart of GBP/CHF below. It’s also risen in excess of 10% while GBP/USD rose just over 7% in the same time period.

The Pound Fell Even Farther Vs. the Franc than the Buck

Lately, the Swiss franc has been very strong. In fact, it’s been much stronger than the dollar. Just glance at the USD/CHF chart and compare the two.

So it’s no wonder that a stronger franc would do even better against a falling pound than the weaker dollar. This is why GBP/CHF has returned 50% more than GBP/USD as the pound has been sinking.

Okay, if you think that’s something….here’s the finale! It’s GBP/JPY.

While GBP/USD returned just over 7% to short-sellers, anyone shorting the GBP/JPY walked away with double the returns. This pair just gained over 14% on the pair as it fell. Check it out on the chart below.

The Yen Has Been Torturing the Pound…

How in the world did this happen? It’s easily explainable if you compare the USD/JPY and GBP/USD charts. Obviously the buck is weaker and the yen has been stronger.

So it’s no wonder that the “stronger opponent” to the weak pound was the yen. Therefore, the short sellers of GBP/JPY made TWICE the returns by shorting this currency cross as those that just focus on the “major” pair of the GBP/USD.

Turbo-Charge your Returns by turning to the Currency Crosses!

This is the reason why I say it pays to focus on the currency crosses. Every one of these currency crosses had significant gains over the major GBP pair (GBP/USD).

Therefore, don’t rip yourself off by just looking to the majors. Some currency crosses can be even more profitable…

Happy Trading,
Sean Hyman, aka Professor FX

P.S. Attention Forex traders: This February, I’ll be in Arizona for our next FX University. And I’ll be hosting at least one workshop on the fastest way to diversify your trading account into these non-dollar pairs. You can learn more about this dynamite event here.

Attention Dollar Bears

Here Are Four Long-Term Strategies to Dump Your Dollars Now

Can you feel it? The tension against the dollar is rising by the day.

We’re seeing dollar bears in the most unusual places (Will Mr. Obama please stand up?)…and investors are getting squeamish about holding just dollars in their accounts with each passing day.

Frankly, the Fed isn’t helping matters. Last week, my colleagues and I gave you the full story on what the Fed has been buying behind closed-doors, and systematically pushing the dollar lower.

Ever since, readers have been sending us questions about how they should be battening down the hatches if the dollar does continue to fall in the long-term. Today, I want to address those questions.

If you’re like most Americans, odds are you have the majority of your portfolio, your 401k and home in dollars.

So, here are few quick ideas on how to diversify for the long-term that you can implement today…

1. Foreign Bonds: Most investors don’t consider foreign bonds “currency plays” per se, but it’s a relatively easy way to buy foreign currencies. Just like buying Treasuries, a foreign sovereign bond is backed by a foreign government.

You’re actually buying a foreign government’s debt, so they have an obligation to pay you back at a specific yield (should you hold your bond to maturity). On top of that, you have the potential for currency appreciation if that foreign government’s currency rises against the dollar. Most major brokers offer foreign bonds. You only need to ask.

2. Long-Term Currency Options: Long-term currency options, specifically on the PHLX or NASDAQ OMX give you the opportunity to buy and hold currencies for months, and take advantage of longer term downward trends in the dollar. We’ve written about options before. You can learn more about them here.

3. Currency ETFs: It doesn’t get much easier. Pick a foreign currency you’re interested in, and buy the ETF right on the NYSE through your regular stock account. Right now, there are over 25 ETFs to choose from (including several that invest in a couple currencies at once). Most of them have a wide variety of call and put options as well.
Don’t like a currency? You can short the ETFs like any other stock or fund.

4. Foreign Currency CDs: If you’re a long-term “buy-and-hold” investor, then this may be your best option. The reason? It’s just like a dollar CD, only it lets you buy and hold foreign currencies for not just months, but years.

Most foreign currency CDs have three-month commitments, but then you can roll over the CD for as long as you want. On top of that, a foreign currency CD generally pays higher interest than the “near zero” rates offered by American banks.

Two years ago, EverBank helped us create a special portfolio of CDs that allows you to quickly invest in six foreign currencies, plus gold. You can learn more about it here.

By the way, please keep the reader questions coming. My colleagues and I all love to read them, and we’ll try to answer as many as we can here in the issue if possible. You can email us at info@worldcurrencywatch.com.

Good Currency Investing,
Kat Von Rohr, Editor
FX University

P.S. In the interest of full disclosure, we have an advertising relationship with EverBank. As such, we do receive fees when you decide to invest in their products. However, we would never recommend a product that we didn’t believe would be a strong option for our subscribers. We would also NEVER recommend any investment issuer without doing our due diligence first.

Forget the Dollar!

Three Reasons Why More Forex Traders Are Avoiding the Dollar Altogether…

As the world’s reserve currency, the dollar is a major part of both international trade and daily spot trading in the Forex market. In fact, it’s estimated that the dollar makes up 1/3 of all trading in the Forex market on any given day.

But frankly, that doesn’t mean the dollar is the only game in town.

Today, more and more traders are turning away from the dollar and trading currencies outside the dollar. They’re taking advantage of tighter spreads, higher volatility and lower fees and diving into trades that go beyond the U.S. dollar.

Here are a few of the other reasons why they’re turning to currency crosses…

1). The U.S. dollar is the top-dog in trading around the world. That means any number of tiny factors can push the dollar back and forth. Interest rates, major political moves, not to mention global events in all corners of the world can send money rushing for (or away from) the buck.

2). U.S. news is the biggest mover of currency pairs (case in point: today’s Fed meeting announcement). That means the dollar can jump erratically based on that news. Some traders like to avoid that altogether, and technically trade other pairs that aren’t so vulnerable to the new.

3). Trading crosses offers more of a diverse trading portfolio than just trading EUR/USD, GBP/USD, USD/CHF, etc. If the dollar moves in a huge way, it’s going to affect all of those pairs even though they have other foreign currencies involved. However, if you have EUR/USD and GBP/JPY and you get a “dollar event” that moves EUR/USD, it doesn’t necessarily directly affect GBP/JPY. Therefore, you’ve diversified your risks.

Happy Trading!
Sean Hyman, Professor FX

The “Other” $1,000 Gold

Why Gold’s Overlooked Cousin Will Leap Another 26% This Year

I know gold steals the show in the mainstream media, especially when gold tops $1,000 as it did over Labor Day Weekend.

It’s easy to see why gold gets all the attention. Personally I’ve had my eye on gold ever since I watched gold break out its triangle pattern around $950 an ounce.

Frankly, I’m not even a gold-bug. However, I do believe you should be on board when ANY asset is headed higher. That’s why I’m a gold bull right now.

However, as much as I like gold, there’s one commodity I like even more that just doesn’t get the publicity that gold does. But as far as I’m concerned, this overlooked commodity will actually rocket much higher percentage wise than gold. It also has incredible upside potential right now.

What commodity is that? Silver!

Yeah, gold is up 13% year-to-date but silver is up 55% year-to-date, and up 100% off its lows! Yet, still silver has room to climb even higher.

You can see from the chart below that silver can leap great distances in a relatively short amount of time. These aren’t anomalies either. Silver has managed to jump like this during several metal bull markets.

Gold’s Cousin Leaps Farther and Faster

Now, why in the world would silver spike higher from here? Well, actually there are several reasons.

Why this Overlooked Commodity Will Continue to Rise

1. The Cheap Inflation-Hedge: Silver is an inflation hedge just like gold. Also, silver is still underpriced if you compare gold directly to silver (the gold-to-silver ratio). This means silver is essentially the cheaper inflation hedge right now. In response, the big intuitional investors will start buying up both gold and silver as inflation starts to creep back into the economy.

2. Scared? Run for Silver: Silver is a great place to invest when investors are concerned about the markets. You see, on Tuesday alone, Obama asked Congress to raise the “debt ceiling” once again. China voiced its concerns over the huge debt loads and the Fed’s money-printing. Then the U.N. came out and suggested that there was a need for an “alternative currency” to the dollar. And that was just in one, 24-hour day. So the “fear factor” is definitely alive and well in the markets right now.

Also, if that weren’t enough…many investors feel that this is a “bear market rally” rather than the start of another bull market. Why? There are plenty of indicators right now that say we’re not facing a recovery here.

One of them is watching what happens in the railroad business. When railroad workers are polled and when the number of trains that are running are counted, it doesn’t point to a recovering economy where commerce is picking up and raw materials are being shipped.

3. A Falling Dollar: It’s almost to a yearly low as of this writing. Why? Much of it is due to the U.S.’s ever-increasing debt load. Then there’s President Obama. He keeps pulling rabbits out of his hat to try to fix this economy. Meanwhile, his approval rating just fell to a “52-week-low.” In other words, our government and nation is losing investors’ confidence both inside the U.S. and abroad. That means problems for the currency.

Gold Is Paving the Way for Silver to Follow!

At those times, money runs for “all things defensive.” Now formerly that has been commodities like gold, silver, the U.S. dollar, the Japanese yen and U.S. Treasuries.

However, now with the enormous debt loads out there, that list is shrinking. I think you can drop U.S. Treasuries and the U.S. Dollar from that list. With the new leadership in Japan, you might be able to drop the Japanese yen from the list. That one is debatable.

So where is the first place for “cautious money” to run to? Gold and silver.

If you’d like a “bonus reason” that silver will continue to go up besides inflation, fear, and the falling dollar…here you go.

4. The Working Metal: Silver is also an “industrial metal.” It’s used in many products that we use every day such as: high-tech electronic products, jewelry, fillings, to make money (commemorative coins) and batteries just to name a few!

So the supplies of silver are reduced all the time and used up more and more all the time. The more you diminish the supplies in the earth, and yet increase the demand for it all the time, it has no choice but to rocket up over time.

Silver’s Ascent to $21+ Will Help This Currency Pair!

For all these reasons, I believe silver could hit $21 – $22 by 2010. That’s why I’m holding some right now.

However, the “Forex guy” in me also is watching the currencies that will also do well when silver climbs. Specifically, I’m looking at the currencies that will sink and rise along with commodities.

In this case, it looks like the U.S. dollar will sink and the Aussie dollar will rise.

Australia, being the huge miner and exporter of gold that it is, will be a huge beneficiary. Therefore, buyers of AUD/USD have enjoyed the recent breakout in these metals and they are likely to continue to as long as the “metal rally” continues.

Bottom line: Stay strong the Aussie dollar, and silver.

Happy Trading,
Sean Hyman

EDITOR’S NOTE: Get the inside track on how to stockpile metals for your portfolio in our FREE special report. Click here to read it right now.

Never Been a Better Time for Stop-Losses

How to Protect Every Trade You Place from Now On

You can say anything you want about the latest run-up in the markets. You can say all the markets are drunk on these newfound “green shoots’…or traders are on a “sugar high” as all assets continue to climb…or you could argue this is actually the start of a sustained recovery.

As someone who is so close to the markets, I can honestly say there are traders on both sides of this argument right now. But the only thing that everyone knows for sure is that the markets continue to sail higher…and they could sink just as fast.

That’s why there’s never been a better time to place stop-losses on every single currency trade you’re making right now.

I don’t care if you’re buying stocks, currency ETFs or currency pairs in the Forex market…you absolutely MUST have a stop-loss on every single trade you place from here on out.

For all ETFs: It’s best to place your stop-loss at 15 – 20% loss, depending on your risk tolerance. This is fairly simple to do. You can create a “mental stop” – which involves watching the markets and dumping your ETF as soon as it reaches your stop-loss level. Or you can arrange it with your broker to sell at a particular level.

For Forex trades: You place a stop-loss at the point where the market will prove you wrong in your trade. You can also place a stop-loss where you have risked the maximum amount of your account that you are willing to lose on that particular trade.

So one way to do this, is to identify areas on the currency chart that show signs of support. Place a stop below that area. That way, if support is broken and a new downtrend emerges, you don’t ride it all the way down and give up your account balance in the process.

Your Stop-Loss Goes Under the Support Line!

However, another approach is not only to analyze this aspect but also to analyze the potential damage to the account percentage too.

So before you place the trade, look at your entry and your stop-loss price. How many pips is the difference between your entry and stop? (You can find this out by looking at any chart.) Once you know the difference in pips, multiply that number by the number of lots that you are considering investing in. How much does that equal in dollars? Ask yourself: Are you willing to risk that much?

If it’s over 1-5% of your account balance, I’d suggest investing in fewer lots.

I’ll be back soon with further hints to help protect your capital. Till then…

Happy Trading!
Sean Hyman, aka Professor FX

How I Made 50% Proving My Friend Wrong

Almost a year ago, a fellow Forex trader and I got into a debate.

My friend said that someone couldn’t make any money in the Forex market without using a huge amount of leverage. In other words, you couldn’t make money trading foreign currencies without risking a lot of your cash.

It was an interesting debate considering that’s usually what keeps potential currency traders from trading in the Forex market. I always hear beginner traders say, “Forex is too risky.”

To which I always reply, “It’s only as risky as you want it to be.” That’s what I told my friend. I argued there were plenty of ways to trade Forex without risking a lot of your capital.

In short, he didn’t believe me. So I set out to prove him wrong….

The Experiment that Proved Me Right…

Over the next month, I opened what’s called a “micro account” with $1,000. A micro account is the smallest account that retail Forex traders use to trade currencies.

I started trading some pairs at first with only ONE micro-lot (1,000 units of currency), which is 10 times smaller than 1 mini-lot. Then I slowly increased it to a few micro-lots (still just 1/3 of a mini-lot).

Four months later, I was up 100% using my very slow and steady trading technique and my extremely small amount of leverage. By the time I finished my experiment later that month, I was still up 50% after a small pullback in the markets. Again using very little leverage.

I took my LIVE account statement to him and showed my friend. “See,” I said. “You don’t have to use tons of leverage to get decent returns…you just need patience.”

By the way, I know very few stock traders who make 50% a year on a single asset… much less 50% in four months.

Now of course, I was only trading a small amount of cash…but I could have just as easily traded $100,000 and made another $50,000 in four months using the same ratio of “light leverage.” Let me show you how…

Three Years of Stock Returns in Four Months of Forex Trading

You see, one micro-lot doesn’t seem like much at first. Neither does 1 mini-lot in a sizable account (ex. $100,000 account).

By the way, in case you’re unfamiliar with the term “lot” – that’s how leverage is measured in Forex. One “lot” lets you essentially buy or sell 100,000 units of currency (dollars, yen etc.). The lot represents this amount of a particular currency. One “mini-lot” represents 10,000 units of currency. And one “micro-lot” (what I used to prove my friend wrong) represents just 1,000 units of currency.

You Only Have to Risk as Much As You Want…

However, as you saw above, even the smallest positions, can add up large profits in this market over time.

After all, anyone who’s trading in an account will surely still want to trade that account four short months from now. However, if you start off slow and easy, you can still end up with a very large return a few months later.

Sure, there are traders that double their accounts in 30 days. These are the same traders that run the risk of “blowing up” their accounts within 30 days too.

It’s not impossible to trade Forex with less risk. You simply tailor your Forex trading to your own risk level. You do this by trading fewer lots in a smaller account, and adjusting your lot size so you minimize your risks over the long haul.

I’ll be back tomorrow with more on how to do that. Till then…

Happy Trading!
Sean Hyman, aka Professor FX

EDITOR’S NOTE: Ready to punch up your Forex trading to the next level? Did you know that exotic currencies can be as much as 500% more profitable than trading the regular majors…and they’re MORE predictable. Find out how you can add them to your portfolio here.

Attention Stock Guys: Don’t Bother Buying this “Currency Play”

My stock buddy has recently fallen in love with foreign currencies…just not trading them in the Forex market as I do.

No instead, he’s buying international stocks. As I mentioned yesterday, he called me recently to find how I choose my foreign currency trades. I told him you always want to pick a stock from the strongest fundamentally strong country.

That way, hopefully the local currency will also sail higher as the stock does, and you’ll earn extra currency profits when you sell your foreign stock.

My insider information is exactly what he needed. Now he’s calling me for all his foreign stock research. We even decided to team up when he goes looking for another foreign stock.

He will have me do what I do best…point out the best pond (economy) to fish in. Then he’ll do what he does best and tear into the fundamentals of each security to see which ones have the best fundamentals.

It’s been a beautiful thing for him. We’ve both been ecstatic with his results.

Now, based off of all of this …I bet you can guess that the U.S. stock market is not my top pick for stock investments. The U.S. is literally drowning in its own debt right now, not to mention stuck with high unemployment, the run-off of this recession, and still mostly weak data across the boards.

Why would you buy strictly U.S. stocks when you can get stronger, better-performing stocks abroad?

Not to mention any U.S. stock is obviously dominated in U.S. dollars, so you don’t have any chance of extra currency profits if you’re a U.S.-based investor.

This is why it’s good to learn about investing in other countries…and you can do that more comfortably once you know about their currencies and their macroeconomics that push those currencies higher.

Once again, your currency knowledge provides somewhat of a safety net for your international stock investing.

Find out where the fundamentals are the strongest and you’ll find out where most of the money will be flowing. THEN drill down into the stocks or sectors that you want to invest in within those countries.

However, never forget…that these “stock plays” are, in the end, currency plays too. So know your currencies and you will do much better in your “international investing” over time.

Happy Trading,
Sean Hyman, aka Professor FX

A NEW Way to “Buy Currencies” Through Your Stock Account

(No ETFs Required)

I have a buddy in the industry that’s a heck of a stock picker.

I’ve met very few stock investors like him. He just has a knack for finding the pockets of value in the markets, even when stocks were bleeding last year.

But he’s been a U.S. stock guy for some time. So it says a lot to me that he’s been looking at international stocks lately.

In fact, he called me the other day to ask me about what I do. He wanted to know how I play the Forex market, how I evaluate various countries, etc. My buddy called me because he already knows what few retail investors realize…

Every single foreign stock is ALSO a foreign currency play. You always want to buy a company from a strong country, with a stronger currency than the dollar. This way, you’re actually earning profits on both the stock’s potential appreciation AND any currency appreciation should that company’s home currency rise against the dollar.

How to Fish in the Best Pond Possible

Back to my buddy for a second… When he called me, he asked how I would start weeding through the thousands of stocks and various exchanges around the world.

I replied: “First, pick the right pond to fish in.”

What do I mean by this? I mean you need to find out which country is MOST worth your investment at any given time. In other words, you always want to buy stocks from the county with the best fundamentals.

To do this, you have to look at a country’s “macro” story first. Look at employment, local GDP, debt ratios, etc.

The reasoning for this? If you’re investing in the country that has the best fundamentals AND you’re picking a great company from within that country…it’s much better than picking a good company within a larger “ho-hum” economy.

So as he was looking for his first “international plays”, I steered him to Australia. Right now, I’d say Australia has the best fundamentals of any of the major G-8 countries. Sound, growing economies help to produce sound and growing companies and vice versa!

Therefore, Australia is the “best” pond to fish in when trying to “hook” a good company.

Here’s another reason why I say that.

How to Tell Where Money Will CONTINUE to Flow AHEAD OF TIME!

I’m picking Australia because superior fundamentals are going to draw money “inflows” into the country. That will push the Aussie dollar even higher vs. the U.S. dollar. So as he (one day) takes profits on his Aussie stock, he will then convert his Aussie dollar profits back into U.S. dollars and grab a nice extra profit.

Where’s the Money Headed Next?

Therefore, he’s made money on a strong company in a stronger overall economy. Plus, he’s made extra cash on the currency conversion even OVER AND ABOVE the stock gains in the Aussie stock market.

That’s a win-win situation any way that you look at it.

My buddy has fallen in love with the idea. So he’s planning to call me next time he goes “fishing” for another stock…so he can use his next stock as a currency play too.

By the way, this works the other way too. You want to avoid buying stocks from countries that has a sinking currency. I’ll be back tomorrow with more on which markets to avoid right now.

Till then…

Happy Trading,
Sean Hyman, aka Professor FX